Florida Condominium Mortgage, ((97% Financing w 580 FICO))
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The FHA/HUD Section 234(c) of the National Housing Act provides authority to insure any Florida mortgage covering a one-family unit in a project coupled with an undivided interest in the common areas and facilities which serve the project. The project may include Florida condo units in detached, semidetached, row, garden-type, low- or high-rise structures. Generally these types of Florida homes are referred to as Condominiums.
Florida Condominium buyers should know the many advantages of the FHA mortgage loan programs. FHA loans were created to help increase home ownership. For the Florida Condo buyer the FHA program can simplify the purchase of a Florida Condominium, making the p financing easier and less expensive than a conventional mortgage loan product. Some highlights of the Florida FHA condominium loan program include:
Minimal Down Payment and Closing costs.
- Down payment less than 3% of Sales Price Gifts are allowed
- Seller can credit up to 6% of sales price towards closing and prepaid costs.
- 100% Financing available
- No reserves required.
- FHA regulated closing costs.
Easier Credit Qualifying Guidelines such as:
-
- No minimum FICO score or credit score requirements.
- FHA will allow a home purchase 1 year after a Bankruptcy.
- FHA will allow a home purchase 3 years after a Foreclosure.
Visit http://www.fhamortgageprograms.com/florida/ to apply for a Florida FHA mortgage.
FHA/HUD will insures mortgagees against losses on mortgage loans used for buying a Florida condo or to refinance individual Florida condom mum units in eligible FHA approved condominium projects provided that they meet certain guidelines.
- Applicant Eligibility. Eighty percent of the HUD-insured mortgages in a Florida condominium project must be the principal residence of the owners (owner-occupants).
- Maximum Insurable Mortgage: Same as Section 203(b) (except that the mortgage amount must be in multiples of $50). Check Florida FHA loan limits.
- Minimum Investment: Same as the FHA loan Section 203(b).
- Mortgage Term: Same as FHA loan Section 203(b).
- Mortgage Insurance Premium Monthly .55 +Upfront MI of 1.75%
- Refinancing: Same as Section 203(b).
If the Florida Condominium is not approved then the Lender may go through the “Spot Approval” process.
The following requirements must be satisfied before a spot loan is endorsed:
Florida FHA Spot Loan Condo Questionair:
Answer “yes” or “no” to all questions. Please read each question carefully, questions are phrased so “yes” answers are always indicative of acceptable project.
____ [1] The legal documents of the homeowners association do not contain a right of first refusal of restrictive covenant.
____ [2] The unit is part of the condominium regime that provides for common and individual ownership of common areas by unit owners.
____ [3] The project, including the common elements and those of any Master Association, are complete and the project is not subject to
additional phasing of annexation.
____ [4] a. There are no special assessments pending. (a “yes” answer means NO special assessments are pending)
b. No legal action is pending against the condominium association, or its officers or directors. (“yes” means NO action pending)
____ [5] The common areas have been under the control of the homeowners association for at least one year.
____ [6] At least 90% of the total units in the project have been sold. Verified by:______________________________________________
____ [7] At least 51% of the total units in the project are owner-occupied. Verified by:___________________________________________
____ [8] There are no adverse environmental factors affecting the project as a whole or individual units. (“yes” means no adverse factors)
____ [9] No single entity owns more than 10% of the total units in the project. Verified by:________________________________________
____ [10] The units in the project are owned in fee simple or the units are held under a leasehold acceptable to FHA.
Leasehold on file ____________.
____ [11] The owners’ association has adequate common area insurance coverage. General liability, replacement coverage, etc., reflects
the character, amenities and risks of the particular development. Flood and other insurances carried, when applicable.
____ [12] General maintenance level of common elements is acceptable and there is no deferred maintenance, based on the comments by
the appraiser and/or the photos.
____ [13] The owner association has a reserve fund, separate from the operating account, that is adequate to prevent deferred maintenance.
The amount of the fund is $_____________ as of ______________.
____ [14] a. For projects consisting of over 30 units, no more than 10% of the total units are encumbered by FHA-insured mortgages.
b. For projects consisting of 30 units or less, no more than 20% of the total units are encumbered by FHA-insured mortgages.
Apply for a FLorida FHA condo loan at http://www.fhamortgageprograms.com/mortgage/fha-loan-program.shtml Article Source:http://www.articlesbase.com/mortgage-articles/florida-condominium-mortgage-97-financing-w-580-fico-1128374.html
http://www.fhamortgageprograms.com/florida/
http://www.fhamortgageprograms.com/faq/fha.shtml
http://www.merchantcircle.com/blogs/Fort.Lauderdale.Mortgage.954-391-8387/2009/7/Florida-FHA-Condominium-Loan-97-Financing-W530-FICO-/282641,
http://activerain.com/blogsview/1140092/florida-fha-condominium-loan-97-w-540-fico-
